China, the second largest economy in the world, will continue to grow at a sustainable pace of above 6 percent in the next three years despite the adverse global economic situation, while the pillar of this growth will be in domestic production, predicts Ignacio Martinez Cortes, a researcher at the National Autonomous University of Mexico (UNAM).
(Soundbite, Spanish) Ignacio Martinez Cortes, Research Professor at UNAM
“The Chinese government has invested in its domestic market. This will certainly help it. Growth in the the next five years, based on the 13th five-year plan, is expected to fluctuate between 6.5 and 6.8 percent. This will be based on internal demand as growth will no longer be reliant on foreign investment. Furthermore, the consumption of domestic production will no longer be concentrated along to the east coast but will spread to central regions.”
After the start of the National People’s Congress’ annual meeting on Saturday in Beijing, Chinese Premier Li Keqiang said that for, 2016 GDP was expected to reach 6.5 to 7 percent, while inflation will remain around 3 percent.
Martinez Cortes considered that the real growth of the Asian giant in the next three years would be at 6.2 percent. Similarly, he said that domestic demand in China would drive taxation, also leading to more tax incentives being created. Finally, he stated that domestic production, consumption and employment would increase domestic wealth.